Adnoc Gas strikes LNG supply deal with Petronas

Adnoc

State-backed energy major Abu Dhabi National Oil Company (Adnoc) has signed the second sales and purchase agreement for its Ruwais liquified natural gas (LNG) project at Al Ruwais Industrial City.

The 15-year contract was signed with Malaysia’s Petronas to supply one million tonnes per annum (mtpa) of LNG.

Deliveries are expected to start in 2028 upon commencement of commercial operations at the facility. More than eight mtpa of the project’s production capacity has been committed to international customers through long-term agreements.

Natural gas plays a critical role in meeting the world’s energy needs, said Fatema Al Nuaimi, executive vice president, downstream business management at Adnoc, adding that the contract supports growing demand in Asia for cleaner and more sustainable energy solutions.

The project comprises two 4.8 mtpa liquefaction trains with a combined capacity of 9.6 mtpa, which will more than double Adnoc Gas’ existing operated LNG production capacity to around 15 mtpa.

The LNG export facility will be the first in the Middle East and North Africa region to run on clean power. It will also help Abu Dhabi become the second-largest LNG supplier in the Middle East after Qatar.

Last month, Adnoc signed its first long-term agreement for 15 years for 1 mtpa with Sefe Marketing and Trading Singapore, a subsidiary of Germany’s Sefe.

Adnoc Gas is looking at international acquisitions and mergers to cope with what it predicts will be strong demand for liquefied natural gas (LNG) in the next decade, a senior executive told AGBI last month.

• Adnoc Gas signs long-term deal with India’s Gail
• Revenues of six Adnoc subsidiaries reach $24bn
• Ruwais LNG will push UAE up the energy table

“We have the balance sheet to do it, so if there is an opportunity, we will definitely consider it,” chief financial officer Peter Van Driel said. 

However, Van Driel said, “it has to be better in terms of returns and risk profile” than what the company has today in the UAE.

Adnoc Gas has increased its capital expenditure plans to $15 billion by 2029, from an earlier forecast of about $13 billion. 

In March 2023 Adnoc raised $2.5 billion from the initial public offering of its gas business, recording the largest-ever listing on ADX.

Five percent of the company, or around 3.84 billion shares, were sold at AED2.37 per share, in the upper half of a range that began at AED2.25.